The Contribution Margin Ratio Is Equal to the Contribution Margin

question 17

True/False

The contribution margin ratio is equal to the contribution margin divided by sales, and shows the proportion of each sales dollar available to cover fixed costs and contribute to profit.

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Definitions:

Bailment

describes a legal relationship in which one party temporarily relinquishes possession but not ownership of a piece of property to another party under agreement.

Carport

A covered structure used to provide limited protection to vehicles, primarily from rain and snow, which unlike a garage, is open on two or more sides.

Liable

Refers to being legally responsible for something, usually implying a duty to make restitution for harm or damage caused.

Salvage

A reward given to persons who voluntarily assist a sinking ship to recover its cargo from peril or loss.